Bill > S3167

This bill, the Fossil Free Finance Act, aims to amend the Bank Holding Company Act of 1956 and the Dodd-Frank Wall Street Reform and Consumer Protection Act. It requires large bank holding companies (those with over $50 billion in assets) to submit plans to the Federal Reserve to align their "financed emissions" (the emissions associated with their investments and financial services) with science-based emissions reduction targets. The bill sets specific deadlines for these companies to phase out financing for fossil fuel projects and deforestation-linked commodities. It also gives the Federal Reserve new tools to enforce these requirements, including the ability to impose penalties and require divestitures. Additionally, the bill directs the Federal Reserve to conduct reports on the state of financed emissions in the U.S. financial system and recommend ways to support an equitable transition to a zero-emissions economy.